Does a person need to be behind in mortgage payments in order to qualify for loan modification?

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We are current on our home loan but our work has slowed considerably and we dont forsee being able to make our mortgage payments in the near future. Our loan is through Bank of America. Has anyone been able to qualify for a Loan Modification that has been in the same position? Any guidance would be apprecaited!

3 Comments
  1. Reply
    ecarcompany
    February 16, 2011 at 3:50 pm

    I have found that unless you are behind on payments, they really don’t have a valid reason to do a loan mod. You may want to look into a refinance instead. I hope it works out for you

  2. Reply
    Stressin
    February 16, 2011 at 4:24 pm

    We went through this process…if you are on time with payments..they could care less and put you through the heck to get some assistance….when you start missing..then they care and try to work with you..sucks but its the way it is. 🙁

  3. Reply
    David H
    February 16, 2011 at 4:54 pm

    If you are already aware this situation might occur then now is the time to drastically cut back on your spending.

    Get your budget in order down to the penny.

    Usually the bank will not do anything unless you are in arrears. And even then most seem not willing to work with you. An independent finance/mortgage company would be best to help you. These are the same companies that got us into the situation in the first place.

    Typically they will refinance your loan, for a fee and then set your rate low for about a year and then it increases 1 point a year for 5 years and then the rate will lock for the current rate for the life of the loan. You have a 35 year loan.

    Go to Dinky town.net for financial calculators .

    Hope this helps.

    You are getting ahead of yourself. But it is good to plan ahead.

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